Europtronic diversifies into biofuels, solar energy
Jessica Cheam, Straits Times 4 Mar 08;
EUROPTRONIC Group, an electronics component distributor, yesterday unveiled its masterplan to diversify into one of Singapore's hottest industries: clean energy.
The locally listed firm is moving into biofuels - a sharp contrast from its core electronics business - and plans to export a jatropha seedling much in demand across the world. Jatropha, a tough bushy plant with oil-rich seeds, holds much promise as a source of biofuel.
Europtronic's radical shift was set in motion in January, when it announced its investment in Chinese firm Dinghan Biotechnology, which specialises in breeding and cloning orchids and jatropha.
Europtronic is paying $6 million in the form of 30 million of its own new shares for Dinghan's. The Chinese firm will then become a wholly-owned subsidiary. A further US$5 million (S$6.97 million) will be pumped in over the next two years to expand Dinghan's capacity, said Europtronic chief executive Justin Huang yesterday.
Dinghan's greenhouse - where it grows jatropha seedlings - will be expanded from 80,000 to 120,000 sq m by year-end, added Mr Huang.
The area dedicated to growing jatropha is expected to hit 67.5 million ha by 2017. The biofuels industry has recently grown at a rapid pace with growing awareness of climate change issues and rise in oil prices.
Dinghan managing director Jerry Huang - the two men are not related - claims Dinghan's strain of jatropha has an oil yield of 55 per cent - 15 per cent higher than the published average of 40 per cent. He also guarantees disease- and germ-free seedlings.
Dinghan, which began researching jatropha a year ago, expects to reach an annual capacity of 13 million plants by the fourth quarter. It will sell each seedling for three yuan (58.8 Singapore cents).
Europtronic said it was in talks with buyers from America, Indonesia and Malaysia. It is considering patenting Ding-
han's technology, a form of 'mericloning'. This involves cloning the best DNA from the stem of a jatropha plant.
The company is also planning to go into the solar industry, according to Europtronic's Mr Huang. The firm has no plans to divest its electronics business, although it is open to such possibilities in the future, he said.
Dinghan has a team of 40 scientists. It made a net profit of 4.3 million yuan last financial year.
Europtronic shares closed 0.5 cents up at 15 cents yesterday.
Europtronic to go environmental; invests in jatropha
The group invests US$6m in jatropha, a form of biodiesel, and solar power
Matthew Phan, Business Times 4 Mar 08;
EUROPTRONIC Group, a maker of electronic components, is the latest Singaporean company to enter the environmental services field with ventures into jatropha and solar power, it revealed yesterday.
At a briefing for the press and analysts, the firm shed light on Dinghan Biotechnology - a Chinese biotech firm it is acquiring via a US$6 million new share issue - which grows high-yielding jatropha seedlings for sale to plantations.
Its jatropha seedlings are high-yielding, with mature plants able to yield fruit with oil content of over 55 per cent, compared with the typical 40 per cent, said Justin Huang, chief executive of Europtronics.
If a hectare of land is planted in 3m by 3m rows, for about 2,500 high-yielding seedlings in total, the seed yield per ha would be about 12,500 kilograms, compared with 7,400 kg normally, he said.
Dinghan plans to mass-clone and sell the seedlings to plantations, or biodiesel companies, said Mr Huang.
For example, it plans to contact D1, a London-listed firm that has a JV with British Petroleum to plant jatropha in Africa and India, to produce biodiesel. D1 has over 200,000 hectares of land worldwide, for which it will need seedlings, according to Europtronics.
It also plans to contact Singapore-listed GKE International, which is planning to plant over 150,000 hectares of jatropha in Asia, said Mr Huang.
However, when asked if he expects concrete deals to flow in, Mr Huang said the company is 'at the very beginning stage'.
'It wouldn't be a big contract, more like one-off buys from plantation owners. We've received inquiries from the US, Indonesia and Malaysia,' he said.
Dinghan expects to start shipping seedlings in six months' time, he said. The firm currently has capacity for about 18 million seedlings a year, but plans to raise this to an annual 30 million by the fourth quarter this year, and possibly 50 million in 2009. It expects to spend some US$5 million over the next two years for this, Mr Huang said.
It sells jatropha seedlings at 3 yuan (S$0.60) each, he said. Dinghan had net profits of 4.3 million yuan on revenues of 20 million yuan in 2007.
Separately, Europtronic, which has a market value of US$50 million, announced an MOU with Taiwan's Millennium Communication, which manufactures and researches solar cell components, to acquire up to 10 million new shares in Millenium for NT$30 (S$1.34), or about US$1.35, a share.
